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Jakarta Post

Too high tax revenue target frightens businesspeople

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, January 9, 2018   /   02:21 pm
Too high tax revenue target frightens businesspeople Tax officers give instructions on how to fill in tax documents at Atrium Senen in Central Jakarta. ( Kompas/Totok Wijayanto)

This year, the government is set to increase tax revenue by 10.94 percent of Rp 1.42 quadrillion (US$99.39 billion) as stipulated in the 2017 state budget.

But, if the 2018 tax revenue target is calculated based on the realization of last year’s target, which was at Rp 1.15 quadrillion, while the tax office is assigned to collect Rp 1.62 quadrillion, this year’s target will see a growth of 23.71 percent.

PT Indofood Sukses Makmur director Franciscus Welirang expressed his concern as he believed that businesses would become victims of a high tax revenue target.

“It is frightening to see the 20 percent target,” he said, as quoted by tribunnews.com on Monday.

Similar comments came from the chairman of Indonesia’s Chamber of Commerce and Industry (Kadin Indonesia), Rosan Roeslani, who said the government’s target was too high, considering this year’s tax revenue shortfall.

He was particularly worried about the implementation in the field. “The government needs to be careful [in deciding the target],” Rosan added.

Meanwhile, Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo agreed that the tax revenue target was too high while the capacity was limited, sparking a possible tax collection injustice.

He believed that 5 percent tax revenue growth would be an ideal figure.

Meanwhile, Finance Minister Sri Mulyani Indrawati called on businesspeople not to worry about the tax revenue target because tax officers would work on it based on data. “Don’t be frightened. I prohibit tax officers from making up the data,” she added. (bbn)